In the area of social economy, the frequent lack of the possibility of deducting input VAT still represents one of the greatest tax hurdles in the design of structures based on the division of labour, in which services are exchanged within cooperation between several corporations. With the introduction of § 4 No. 29 UStG through the Annual Tax Act 2020, other services that groups of persons provide to their members can be exempt from VAT under certain conditions.
Source: pkf-issing.de
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